If the annual fee just came due for one of your travel rewards cards<\/a><\/span>, you may find it difficult to justify the expense if you’re not getting enough value in return. If you can’t maximize the card’s benefits, earning rates or redemption opportunities, there may be an option besides paying the annual fee<\/a><\/span>, canceling your card<\/a><\/span> or calling to see if you can snag a retention offer<\/a><\/span>. That option is to downgrade your card.<\/p>\n As a result of provisions of the Credit CARD Act of 2009, you’ll generally need to wait until you’ve had your card for a year before you can downgrade it. However, some issuers have different policies, and there are also some other aspects to consider.<\/p>\n Here’s when you can downgrade your credit card account for most major card issuers \u2014 and when it might be a good option.<\/p>\n Downgrading your card means switching to another credit card offered by the same issuer with a lower annual fee (or none at all). Because you usually aren’t opening a new account, there typically won’t be a new inquiry on your credit report<\/a><\/span>, and your online login information should stay the same.<\/p>\n You’ll receive a new physical card in the mail that may have a new card number, but your account history, credit limit<\/a><\/span> and other major factors that affect your credit score<\/a><\/span> shouldn’t change.<\/p>\n You can save on annual fees by downgrading your premium cards. However, some issuers base your eligibility for welcome bonuses<\/a><\/span> on which credit cards you’ve had open, not just which cards you’ve earned a bonus on. So be wary that downgrading a card might prevent you from earning a valuable future bonus.<\/p>\n Most issuers only allow you to upgrade or downgrade within a single family of cards. However, issuers may not offer the same downgrade options to all cardholders, and some of your cards may not have any downgrade options. Finally, while issuers may offer bonus points when you upgrade to a new credit card product<\/a><\/span>, it’s unusual for an issuer to provide bonus points to downgrade.<\/p>\n Related: 11 major mistakes people make with travel rewards credit cards<\/a><\/span><\/strong><\/p>\n American Express doesn’t publicly state a required waiting period before downgrading a card. However, it’s generally best to wait at least one year<\/a><\/span>, as American Express has historically included language in its card offers warning that customers who cancel or downgrade cards within the first year could lose rewards or even have their accounts closed.<\/p>\n Reward your inbox with the TPG Daily newsletter<\/p>\n Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG\u2019s experts<\/p>\nWhat does it mean to downgrade a card?<\/h2>\n
When can you downgrade an American Express card?<\/h2>\n
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